look news india
There is good news for the central government employees who are eagerly waiting for the increase in their dearness allowance (DA). According to reports, a final decision can be taken on the DA hike in the cabinet meeting (potentially today) to be chaired by Prime Minister Narendra Modi. Typically, cabinet meetings are held on Wednesday, and this time the government is likely to announce 2% DA. If this happens, dearness allowance will increase from 53% to 55%.
How much will be increased in salary?
The 2% DA increase will increase by Rs 360 in the salary of an entry-level employee with a basic salary of Rs 18,000 per month, which is considered to be applicable from 1 January 2025. For example:
- Currently, an employee with a basic salary of Rs 18,000 gets Rs 9,540 as 53% DA.
- After 2%, the DA will be Rs 9,900, which will increase the total salary by Rs 360.
- If the DA had increased by 3%, it would have increased to Rs 10,080, which would have increased by Rs 540.
DA reviews twice a year
The central government reviews the inflation allowance twice every year in January and July. Its purpose is to give relief to employees from increasing inflation. Increasing DA provides benefits not only to government employees but also pensioners as they too get equal increase in inflation relief (DR).
How much was the last increase?
The last time the government had increased the DA by 3% from 1 July 2024, increasing it from 50% to 53%. Pensioners also got the benefit of inflation relief (DR) in the same proportion. Now it will be interesting to see how much the government announces this time and how much relief the employees get.